Positive developments offer golden opportunity to repay debt

A number of positive developments in South Africa recently means that people's wallets are getting a little healthier as declining interest rates, inflation and fuel costs free up extra cash.

- 

Along with access to some retirement savings could provide a lifeline for struggling consumers - but only if they grab it.

The first thing consumers should do with this extra money is pay off expensive debt, says Benay Sager, executive head of DebtBusters.

"While the 25-basis point repo rate cut and a slight decline in inflation will provide some relief, it is not significant," he says.

"However, taken with the 20% decrease in fuel costs since May, it will contribute to more disposable income for most consumers.

"This and the ability to access some retirement funding will enable them to improve their finances.